Edition 1453
09 December 2017
Edition: 1453

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Bank of Portugal says that banks need to cut non-performing loans

by TPN/ Lusa, in Business · 30-11-2017 13:58:00 · 0 Comments

The vice-governor of the Bank of Portugal, Elisa Ferreira, warned on Wednesday that banks “still have a lot of work to do” to cut the high level of non-performing loans that weigh on their balance sheets, despite improvements over the past years.

Elisa Ferreira was speaking at the opening of a meeting on banking in Lisbon. She said the banks had made progress in recent years with more sustained funding, better financial margins and what she called “increased potential in operating efficiency” because of restructuring programmes the banks are implementing such as cutting costs, particularly with workers, which, in the future, should lead to higher operating efficiency.
However, she said, the Portuguese banks’ return on equity was worse than other European banks, which she blamed mainly on the fact that Portuguese banks had to record significant impairments to cover their non-performing loans.
“Although the level is still very high, it has been coming down”, she added.

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Edition 1453
09 December 2017
Edition: 1453

Read this week's issue online exactly as it appears in print.

Twitter